TM's proposed demerger exercise, which will result in the spin-off of its mobile arm, has attracted a lot of interests. A stake of about 10% of the mobile arm (which is generally referred to as the "RegionCo") maybe placed out to either foreign funds or an international telecommunication company. Amongst the interested parties are Vodafone (see
this story) and AT&T (see
this story). I think Vodafone may have an inside track as it has prior dealings with TM as well as being the second largest mobile operator in the world (with the top place going to China Mobile). As at January 2007, Vodafone has more than 200 million customers in 25 markets, spread across 5 continents.
Regardless of how the spin-off will be done, TM share price has been trending up since the proposed demerger exercise was first announced in September last year. From the chart below, we can see that the uptrend line support is at RM10.90-11.00, which will be a good entry level for this stock.
Chart: TM's daily chart as at January 2 (courtesy of Quickcharts)
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